Third Party Vendor Risk Management

Guidelines recently introduced regarding third party vendor risk management and vetting have created a situation difficult for many community banks to manage. Insurance and financial services policies and programs, for most community banks, have been in place for many years- with little vendor update or program review.

Having an independent third party review non-deposit insurance and financial services programs provides several key benefits:

  • Establishes the basis for a third party vendor management compliance examination;
  • Provides key bank insurance policy, limits and coverage review;
  • Provides information regarding compliance issues.

Key non-deposit areas available for review:

  • Financial institution bond
  • Directors and officers liability
  • Package P&C
  • Cyber
  • Force placed insurance including internal procedures
  • BOLI
  • 401(k)
  • Retail investment contract and programs
  • Direct marketing insurance
  • Loan related insurance programs
  • Checking account and club programs

A detailed management report is provided for senior management, board of directors as well as regulator information in a written as well as a focus group setting.

Contact Aza Bittinger at 614.846.2238 to learn how CBAO can help you with partner sourcing.